Hundsun Technologies Inc. is a major supplier of financial software and network services to customers in the asset management, banking, communications, e-commerce, fund management, futures, insurance, securities, and trust sectors. Its fund transfer agent system, known as TA System, has been recommended by the China Securities Regulatory Commission as a benchmark financial software program, and is used by more than 86% of fund management companies in China.
By using Oracle Database 11g with Real Application Clusters, and Oracle Tuxedo to underpin the latest version of TA System, Hundsun Technologies improved system capacity eightfold, reducing application batch processing time from 480 minutes to 53 minutes, and cut approved application accounting time from 55 minutes to just 6 minutes.
Hundsun Technologies’ TA System plays a pivotal back-end role in managing and processing transactions, enabling fund management companies to issue new funds, manage investor accounts, transfer shares to investors’ accounts, and calculate equities, dividends, and fees. The system is also a source of data for other business platforms, such as the investment transaction, accounting clearance, valuation, and customer service systems.
Its critical role in fund management operations means A System must be powerful, highly reliable and available, and secure. For example, on the day a new fund is issued, the TA System must process millions of account-opening and other transaction requests. If it fails to complete all application and transaction requests on the same day or errors occur during processing, investors’ money will not be transferred to the fund management company. This would delay the establishment of the new fund and be detrimental to the business.
“Fund management companies must be able to process all the transactions they receive each day in an efficient, timely, and secure manner,” said Xu Changrong, vice general manager, fund and institutional wealth management department, Hundsun Technologies Inc. “For example, the data from these transactions is then fed into other business systems used by sales agents.
“Because of the massive volume of data involved in transaction processing, we needed a stable, reliable, and powerful database platform for our TA System,” he said. “We decided to build the fourth and latest version of our TA System on Oracle Database 11g with Oracle Real Application Clusters, and to use Oracle Tuxedo middleware.”
The Oracle platform has significantly improved the performance of TA System. For example, when processing stored basic data, including 8 million account numbers, it now takes 5 minutes to complete account verification tasks—such as checking the integrity and validity of transaction application data, rejecting invalid applications, and generating account validation reports—compared to 38 minutes in the past. Similarly, it now takes 14 minutes to complete critical fund share trading tasks, such as processing a variety of trade confirmations and rights registrations, instead of 121 minutes.
Application batch processing time has also been reduced from 480 minutes to 53 minutes. In addition, it takes just 6 minutes to complete approved application accounting tasks, such as share transfers, compared to 55 minutes, previously.
Fund management companies can use TA System to calculate fees, interest payments, and the revenue obtained by selling shares. This ensures they can settle millions of transactions with hundreds of sales agencies and affiliated banks efficiently and accurately.
The TA System also offers enhanced security, ensuring confidential customer and financial information is protected from unauthorized access.
“On the whole, the adoption of Oracle has improved the capacity of TA System eightfold, strengthening Hundsun Technologies’ reputation in the market as the leading provider of financial software for fund management companies,” said Xu.
TA System has enabled one of Hundsun Technologies’ clients to enjoy improved processing performance. Yinhua Fund Management Co., Ltd is one of the top 10 integrated asset management companies in China, based on the total value of managed assets. The company uses TA System to handle fund applications and share transfers. The system takes just 80 minutes to process an average day’s transactions, such as 2 million new accounts, 8 million existing accounts, 3 million fund purchases and application redemptions, and 15 million share fund transfers.
“TA System on the Oracle platform outperforms other similar solutions in terms of stability, performance, and responsiveness,” said Song Xiaogang, senior IT manager, Yinhua Fund Management. “For a fund-management company like ours, with nearly 10 million customers, this high level of performance is crucial as it directly affects our ability to do business and compete effectively.”
Hundsun Technologies chose Oracle Database 11g with Real Application Clusters, as the products offered “a reliable, stable, scalable, and highly available database environment.” The company chose Oracle Tuxedo, as the middleware was highly reliable, and ensured transaction integrity, linear scalability, and configuration-based deployment.
“Oracle Tuxedo’s powerful messaging and transaction processing engine ensures the highest possible availability and throughput for the TA System, which will satisfy the current and future needs of our fund management clients,” said Xu.
“Oracle Tuxedo is easy to expand and provides virtually limitless scalability,” he added. “For example, the software can automatically create auxiliary services, according to real-time system loads and throughputs to ensure the reliability and performance of mission-critical applications. These features of Oracle Tuxedo make it possible for us to optimize TA system’s performance.”
When Hundsun Technologies tested the latest version of TA System (4.0) against the previous version (3.0), the company found that TA System 4.0 was nearly 10x more efficient than TA System 3.0 in processing transactions. When data volumes were at average levels, TA System 4.0 was 4x faster than the older version for account verification tasks, batch processing, and post-transaction accounting.
“The test results gave us confidence that the Oracle products would deliver the performance required by fund management companies to handle the increasing number of customers and volume of transactions with ease,” said Xu.
The company also liked the access control tables in Oracle Tuxedo, which would enhance the security of the TA System. In addition, Oracle’s open architecture would also ensure TA System could be easily integrated with business systems and hardware platforms used by Hundsun Technologies’ fund management clients.
Hundsun Technologies built a clustered database environment based on Oracle Database 11g, with Real Application Clusters. Oracle Tuxedo serves as the transaction middleware. TA System uses the message routing, message queuing, communication, application dividing, and password functions of Oracle Tuxedo.
Hudson Technologies began by installing and deploying Oracle Database with Real Application Clusters before installing Oracle Tuxedo. It could then deploy its TA System 4.0, which went live in December 2011.